Company Number: 14471094

Analysis Date: 2025-07-20 11:54 UTC

1. Risk Rating: HIGH
   The company shows a significant negative net asset position with net liabilities of £5,635 as of the last financial year end. Being newly incorporated in November 2022 and reporting negative working capital indicates potential solvency and liquidity risks.

2. Key Concerns:

• Negative net current assets (£-5,035) and net liabilities suggest inability to cover short-term obligations from current assets.
• Small scale and micro-entity status with only 2 employees and minimal current assets (£634) limits operational resilience and cash flow.
• Lack of audit and limited financial history restricts full visibility on financial stability and governance controls.

3. Positive Indicators:

• The sole director and 100% shareholder is also an electrician by occupation, implying direct operational involvement and industry knowledge.
• All statutory filings (accounts and confirmation statements) are up to date with no overdue returns or penalties.
• The company operates in a clear niche (electrical installation) with defined SIC code 43210, which may allow focus on specialized services.

4. Due Diligence Notes:

• Investigate the cause of negative net assets and how the company plans to improve liquidity and solvency positions.
• Review cash flow forecasts and any arrangements (loans, director funding) supporting ongoing operations.
• Confirm if any contingent liabilities or operational risks exist that could exacerbate financial strain.
• Assess the director’s plans for business growth, client acquisition, and working capital management.
• Verify absence of related party transactions or director loans at adverse terms.